Client |
| A subsidiary of the second largest Cement manufacturing company in the world.
|
Approach |
| The project was initiated with a survey of the demand variability and
mapping the existing supply chain network structure into ScSimulator
(DecisionCraft's proprietary solution). The inventory levels at
different depots were mapped to the depot's demands highlighting the
need for a thorough network and policy analysis using ScSimulator.
ScSimulator allowed simulating hypothetical scenarios based on
alternate network configurations and policies. Optimal network
configurations and policies were estimated using ScSimulator.
|
 |
|
| Demand Variability Study |
|
|
| Create What-if scenarios and analyze |
| Network Related Scenarios |
 |
From where to source raw material and how to supply FG to One Stop Shops and retailers? |
| |
Do they need distributors? |
| |
What should be the size of a storage (Silo) at plant? |
| Policy Related Scenarios |
| |
How responsive is my supply chain to sudden spikes in customer demand? |
| |
If I increase the service level from 95% to 99%, how much average inventory will increase and where? |
| Scenario Analysis for Supply Chain |
|
|
|
Solution |
| A series of recommendations were made in terms of network configuration and supply chain policies that
included back hauling and reducing the usage of costly spot charters for shipping raw materials.
|
| Activities |
AS-IS |
| No. of Ports |
3 |
| No. of Warehouses |
4 |
| Types of Ships |
4 |
| No. of Material Flow Links/paths |
9 |
| Supply Chain Spread |
Diffused |
| Back Haul |
None |
| Ship contract |
Spot charter &
Time Charter |
|
 |
| Activities |
AS-IS |
| No. of Ports |
1 |
| No. of Warehouses |
2 |
| Types of Ships |
1 |
| No. of Material Flow
Links/paths |
4 |
| Supply Chain Spread |
Consolidated |
| Back Haul |
Yes |
| Ship contract |
Time
Charter |
|
| Reengineered Supply Chain based on our Recommendations |
|
|
|
Benefits |
| The savings for the client were estimated to be approx. USD 6.8 Million based on the new network configuration and policies.
|
| |
Operations Research 
